The Memphis appeal. [volume] (Memphis, Tenn.) 1886-1890, 1887-07-26
A STUDY IN CORNERS. -
THEY BECOME MUCH MORE DIP.
FICULT TO RUN.
Speculation Tor Future Delivery En-
tering More Into Legitimate
Trade--The Telegraph.
ESPECIAL TO THE APPEAL.l

ceBSiul wheat corner at Chicago. Here
lie The suspension oil the old time cot.
ton house Of Kaufman & Ruuge, in
pace OF profitable tqueese In August
cotton options. Facts like these help
TO make clear the increasing difficulty
OF engineering a successful corner on
specu alton on great scale In any
one OF the great staples. II the at
tempted wheat corner was the burg.
ling work OF outsiders the cotton
gambling Of julius Runge, OF tho Gal.
weston concern, was the work Of a man
laying every claim TO the knowledge
and skill Of an insider. The frm Of
Kaufman 4 Ruuge dates back to tho
ioTtits, when stream OF higbspirited,
resolule men went out from Germany
TO Texas. One OF these was the senior
kaufman, now dead rome years.
From the | rites until now no other
trading concern has had more, II as
much, TO do with the industrial de-
velopment Of that State. OF late years
the firm has been giving much atten-
lion TO reporting the cotton cop Of
Iexas, and this with unusual sccuracy.
The crop reporting was Mr.. Rnnge's
particular pride But he was not con.
tent. Early in this year he conc sivej
the idea oil concerning cotton for the
August delivery. There was cotton
enough for the millmen oil the world,
AHN 10
ly distributed. The outlook was
that an unusually large part
Of the American crop would
be In Europe by August and that the
stocks here would bs mainly held In
Now York and New Orleans, with the
interior supplies fairly exhauo.ed,
The statistics were all right but the
scheme did not work. The cause of
the failure 10 worth looking into, az Il
must tell heavily against all future
would.be corners. Ruuge did not take
sufficient account OF the fact that the
ocean cable he WAS 10 uss is at the
service Of the other fellow also. The
other fellow Ia the English cotton
spinner. A big fruit house went
down the other day after trying TO
corner primes, yet In the first year OF
cable communication n tingle New
York grocery house made $50, 900 on
prunes alone. For the year the. house
had q private cable. Thugs have
changed since. No sooner was Ruu ,e's
buying well under way than the Eng
lish spinners set up q concerted cry
Tor short time at the mills, and ut the
same time proceeded TO buy cotton
spsriDgly. THESE spinners have come
10 be well organized. They had ad.
vance information on Runges opera.
lions. To make bad worse the In.
coming reports OF the new crop In this
country were extremely favorable.
Again the spinners were quite as we'll
informed M Runge. The point
20 oil this Ia that with
the present full communication by
rail- and wire the sum OF accessible in
formstion 10 bound 20 equal n II does
not surpass that held by Runges. Ia
this way raining corners In ihe great
staples must come 20 be more difficult
and nero disastrous. Take the laie
wheat speculation. No sooner was
the fight we'll on than the farmers of
Northwest In effect began operations
Tor the bear side. They hurried their
stocks 20 market 30 gain advantage Of
Artificial prices. Thus the producer In
the American wheat grower aud the
manufacturer In the Eig'iOh spinner
are direct operators against artificial
price movements.
When 10 run corners means 10 race
directly with producers the business
OF making mp prices on q great scale
must decrease. Cornering this On that
great staple or loreatalling the market,
ns " used 90 be called, Ia simply ad.
vance crop reporting. The Afmours
IN iormer years m de more than one
fortune In grain through getting the
iacis ~ n crop yields la advance OF
their reaching The public. THIS IL
more difficult n no, impossible now
with the general deve' opment ~ gov
eminent and newspaper crop report
ing. All s'gns are now pointing 90
better crop reporting by the newfpa-
pere. This important field promises
indeed 10 be occupied by the journal
10 10 the comparative exclusion OF the
government. Az this work becomes
OiEaniI corneTe will be unheard Of
thlngs. Pice fluctuations will he
comparatively slight and prcfita
will moro Apd more accrue 10 tho
producers. This Ia maasufably
true already. The ups and downs Of
prots aavs been lesscning a'oag with
thlo great v lume Of epecu atom. Tho
bn'l aud tho bear nrutrAlize zach
other. B,iore the telegraph the most
violent huolationa took place. Ia
Eafope wien great fall Of prices oc.
CURED nj one city, merchants dis
patched ihe sWilleat court era 20 other
trading centure, Zach trying 10 gala
hp, entry for the fact. Thiogs ars
nov making rapidly for worli.wids
market and single price list. Before
pn'rk and cay clmmunication ths
.uifiHonoee In the prios Of wheat com
pHrrg one part 81 "a country 10 another
were very great.
Speculation is therefore ,flecting Ia
nEn core. The fales Of 4 Civ n Staple
ia iutnrs delivery are entering more
aud more into legitimate trals a, the
ally 0i prcduolivn industTy. The cot
t'n spinner has Coz n long Tins mad,
advance talcs d his goods. lie cal
now buy the raw cotton iuture
agtin,ttuch tsles. In this way meun
sro provid ld for eliminating speculs
son Ia greet degrees from spinuerr
business wLa, 10 g5odilr the CO, toI
''ads app'ic6 10 other trades, thougl
nerlapa 10 lee d,gree II Ia graduH
~ coming ~ be tue Of all. this
enforced by the changes In the legu
iTrr,mert II contracts for iu'urc q,
ivtra Gradually the various Sat
sd Federal Courts have come TO b
nfatly on IN uplolding mArgini
coliTa0s Fora time Il was suppose
shat tho ordinary policy OF a,e insu
area vas oi tle nature OF bet, IN
thgre wa doub whether the cour
wHud cttIrc, contracts OF iu6utanS
because Il l0okei % though the IL
snfer vhs -, ing % the Insured,
glll het YOU the value OF your hon
,iist n q 90 mt burn down" N
"pu" aud "cAll" brokers IN Wall sire